Falling Mac Sales Have Apple's OLED Panel Suppliers Spooked

[MacRumors]

Apple plans to transition Macs and iPads to OLED displays over the next few years, but a new report out of Korea claims panel suppliers are holding back key investment in next-gen OLED production lines over rising concerns about slumping Mac sales.

Apple will launch its first OLED iPads next year and South Korean panel makers intend to use their existing Gen 6 OLED lines to cover Apple's 2024 supply needs. But for iPads and MacBooks after that, Samsung Display and LG Display plan to build Gen 8 production lines, which yield more OLED panels per substrate than Gen 6 lines and are more cost effective.

However, according to The Elec, the two panel makers have yet to place orders for key equipment needed to build the Gen 8 production lines, which take at least a year to complete.

The outlet's sources suggest the Korean panel maker's hesitancy to invest is directly linked to concerns over profitability. There is no precedent for OLED panels being used in MacBooks, therefore ambiguity remains over how much Apple will be willing to pay for the panels.

But there is now growing concern over just how many units Apple will order given the recent slump in MacBook sales. Apple in its recent quarterly earnings call reported a significant year-over-year decline in Mac revenue, falling from $10.4 billion to $7.2 billion. In the previous quarter, Mac revenue was also down to $7.7 billion compared to $10.9 billion in the year-ago quarter.

The decline follows a pattern amid a severe downturn in the global PC market, with reports indicating that Apple responded earlier in the year by requesting a temporary suspension in the production of Mac processors, and they only resumed at half of supplier TSMC's production capacity.

With OLED displays in MacBooks likely to only increase the sales price, display panel suppliers reportedly believe Apple will inevitably attempt to cut unit prices down.

Samsung in April said it plans to spend 4.1 trillion won ($4.1 billion) building Gen 8 OLED production lines up to 2026. With the Korean display maker facing demands from OLED machine suppliers to pay development fees on top of machine prices, and LG Display already in the red, both face difficult investment choices in the months ahead without guaranteed orders from Apple.

Apple reportedly plans to sequentially introduce new ‌iPad Pro and Mac models with OLED displays. Display analyst Ross Young said that he expects a ‌MacBook Air‌ with an OLED panel to launch as soon as 2024, which could also be the year Apple launches an OLED iPad Pro.

Samsung is expected to have a lasting role in supplying the OLED panels, contributing to the iPad Pro, ‌MacBook Air‌, and 14- and 16-inch MacBook Pros, although the Pro models are not expected to transition to OLED displays until 2026.

Article Link: Falling Mac Sales Have Apple's OLED Panel Suppliers Spooked

 

[Apple Knowledge Navigator]

TC just needs to go all squinty eyed on ‘em and they’ll cave in… Works every time (so I’m told)

 

[Hank001]

That revenue decline is revenue, not unit sales. Perhaps the number of Macs sold has increased, but people are fed up with The Apple Uptick and simply don't max their machines out anymore.

 

[ghanwani]

panel suppliers are holding back key investment in next-gen OLED production lines over rising concerns about slumping Mac sales.

Tail wagging the dog? If they don't build panels what's Apple going to do? This is an interesting dynamic in our new world where money is no longer free. Points to more inflation then because suppliers don't want to build and be stuck with inventory and have to lower prices.

 

[TheYayAreaLiving 🎗️]

Get rid of the Notch on the MacBook Pro model and the sales will increase. In addition, release a new iMac, please.

When is another day? Still waiting...

 

[t0rqx]

Back to basic.

#1 Rule what made Apple great again.

When you deliver quality, profit follows. A mantra most of the current executives never got taught and the ones who did are ousted, because: first profit, than OK quality.

Doing exactly what Scott Forstall was fired for in the first place.

 

[cocky jeremy]

That makes zero sense. They don't want to upgrade to a more cost effective setup due to worry over profits? What? Upgrading will literally save you on every unit produced.

 

[4odomi]

Apple plans to transition Macs and iPads to OLED displays over the next few years, but a new report out of Korea claims panel suppliers are holding back key investment in next-gen OLED production lines over rising concerns about slumping Mac sales.

Apple will launch its first OLED iPads next year and South Korean panel makers intend to use their existing Gen 6 OLED lines to cover Apple's 2024 supply needs. But for iPads and MacBooks after that, Samsung Display and LG Display plan to build Gen 8 production lines, which yield more OLED panels per substrate than Gen 6 lines and are more cost effective.

However, according to The Elec, the two panel makers have yet to place orders for key equipment needed to build the Gen 8 production lines, which take at least a year to complete.

The outlet's sources suggest the Korean panel maker's hesitancy to invest is directly linked to concerns over profitability. There is no precedent for OLED panels being used in MacBooks, therefore ambiguity remains over how much Apple will be willing to pay for the panels.

But there is now growing concern over just how many units Apple will order given the recent slump in MacBook sales. Apple in its recent quarterly earnings call reported a significant year-over-year decline in Mac revenue, falling from $10.4 billion to $7.2 billion. In the previous quarter, Mac revenue was also down to $7.7 billion compared to $10.9 billion in the year-ago quarter.

The decline follows a pattern amid a severe downturn in the global PC market, with reports indicating that Apple responded earlier in the year by requesting a temporary suspension in the production of Mac processors, and they only resumed at half of supplier TSMC's production capacity.

With OLED displays in MacBooks likely to only increase the sales price, display panel suppliers reportedly believe Apple will inevitably attempt to cut unit prices down.

Samsung in April said it plans to spend 4.1 trillion won ($4.1 billion) building Gen 8 OLED production lines up to 2026. With the Korean display maker facing demands from OLED machine suppliers to pay development fees on top of machine prices, and LG Display already in the red, both face difficult investment choices in the months ahead without guaranteed orders from Apple.

Apple reportedly plans to sequentially introduce new ‌iPad Pro and Mac with OLED displays. Display analyst Ross Young said that he expects a ‌MacBook Air‌ with an OLED panel to launch as soon as 2024, which could also be the year Apple launches an OLED iPad Pro.

Samsung is expected to have a lasting role in supplying the OLED panels, contributing to the iPad Pro, ‌MacBook Air‌, and 14- and 16-inch MacBook Pros, although the Pro models are not expected to transition to OLED displays until 2026.

Article Link: Falling Mac Sales Have Apple's OLED Panel Suppliers Spooked

This is what happens when you sit on your laurels and take the pee out of your customers by feeding them Mickey Mouse upgrades 😏

 

[t0rqx]

Get rid of the Notch on the MacBook Pro model and the sales will increase. In addition, release a new iMac, please.

When is another day? Still waiting...

The whole line-up is a mess, they have been leading by number of dollars instead of innovation and quality. It shows, strange upgrade intervals, devices getting nixed, re-introduced or "for another day". It is a big mess and people leaving the company. The quarter profits might not show it, but behind all that...the company is DoOoooOOooOOmed.

Ya'll think Tim is bad? Wait for the one who becomes CEO next, it will be John Sculley 2.0 and the only one who can save it is Eve Jobs.

 

[TheYayAreaLiving 🎗️]

This is what happens when you sit on your laurels and take the pee out of your customers by feeding them Mickey Mouse upgrades 😏

I also believe this is part of the reason too. Apple just won't fix it.

 

[StellarVixen]

Slump in sales has been somewhat exaggerated by having covid sales boom before that. It was unrealistic to top that again so soon.

 

[4odomi]

Get rid of the Notch on the MacBook Pro model and the sales will increase. In addition, release a new iMac, please.

When is another day? Still waiting...

It's not the notch IMO, it's the Mickey Mouse upgrades since the original M1 😏 Most people are waiting for a proper upgrade with the M3 and if Apple doesn't deliver, Mac sales will continue to be in trouble!
As far as the notch is concerned, if they're keeping it, then it should at least have a Face ID and a camera on a par with iPhone

 

[rpmurray]

Imagine if they had a 27 inch iMac line that they could equip with OLED displays.

 

[TheYayAreaLiving 🎗️]

It's not the notch IMO, it's the Mickey Mouse upgrades since the original M1 😏 Most people are waiting for a proper upgrade with the M3 and if Apple doesn't deliver, Mac sales will continue to be in trouble!
As far as the notch is concerned, if they're keeping it, then it should at least have a Face ID and a camera on a par with iPhone

100% Agree with you.

Well, If the MacBook Pro Notch serves no purpose I don't even know why it's there in the first place. I wish Apple had never included it. I wonder if non-tech people ask Apple what does this square box (notch) do?

 

[deputy_doofy]

Get rid of the Notch on the MacBook Pro model and the sales will increase. In addition, release a new iMac, please.

When is another day? Still waiting...

Fully agree with getting rid of the notch. There’s no technical reason for it to exist. It’s an eye sore, not a fashion statement.

Apple just keeps doing stupid 💩.

 

[Blackstick]

They sold a record amount of Macs during the pandemic. It wasn't going to sustain so this dip is just a correction to more typical sales volume for the line. Especially since modern Macs with SSDs last 5-7 years of use, easily.

 

[StoneJack]

U commenting guys are not ceo material.
Zero business sense

 

[ignatius345]

PC sales across vendors have declined on the heels of big increases as workers solidified their remote WFH setups. They've also declined in the face of increasing economic uncertainty as the R word gets bandied about. Keep grinding those axes about the notch or RAM or (lol) bezels or whatever, but there are bigger economic forces at play.

 

[WiiDSmoker]

Because their iPad lineup and pricing is ****ing bonkers and their Macs RAM and SSD upgrades are nothing but outrageous. While their base models have absolute bare minimum RAM and SSD with a high starting point overseas.

Apple is nothing but greed and bare minimum now due to Tim Crook.

 

[Rychiar]

Get rid of the Notch on the MacBook Pro model and the sales will increase. In addition, release a new iMac, please.

When is another day? Still waiting...

what’s wrong with the notch? Isnt it just in the taskbar dead space anyways? iMac is BADLY Needed

 

[HobeSoundDarryl]

Imagine if they had a 27 inch iMac line that they could equip with OLED displays.

Imagine the price of THAT iMac now that Apple has successfully launched only the screen portion of the former 27” at what used to buy that same screen WITH the computer, keyboard and mouse. 💰💰💰

 

[Royksöpp]

Mac prices have gotten out of control. Almost every retailer is selling them for less than full price. The only Mac that is reasonably priced with and without discounts is the Mac Mini. That is one of the best value for the money Macs Apple has made in a very long time. The M2 Air could have been Apples solution for generating sales, instead they blew it by destroying the sweet spot of $999. Their next move should be interesting. They can’t go on like this as sales have proven.

 

[TheYayAreaLiving 🎗️]

what’s wrong with the notch? Isnt it just in the taskbar dead space anyways? iMac is BADLY Needed

Nothing wrong with the notch. I just prefer the simpler classic look. No distractions!

 

[t0rqx]

I also believe this is part of the reason too. Apple just won't fix it.

"Why fix it? People are going to buy it anyway, cause it's Apple". Does this quote ring a bell?

 

[DonutHands]

Tail wagging the dog? If they don't build panels what's Apple going to do? This is an interesting dynamic in our new world where money is no longer free. Points to more inflation then because suppliers don't want to build and be stuck with inventory and have to lower prices.

Also, if Apple actually put in an order, then they would build the production lines and panels. Both the product and part are years away. Someone is taking a gamble, either the supplier building too many parts, or Apple not having supply when the time comes to bring to market.